A brief overview of Marketing\'s role in driving profitable growth

1. Strategic Marketing
A Brief Overview
Ken Thomas
Robbins, Inc.

2. Marketing to the Uninformed

3. The Ultimate Goal of Marketing
“Sell more stuff, to more people, more often,
for more money.”
Sergio Zyman

4. Strategic Marketing Defined
The management function within a company that seeks to
generate a profit by organizing the firm’s resources and
activities to determine and satisfy the needs and desires of the
customer, delivering better value than competitors
It is a company-leading, defining and direction-setting function
Source: “Strategic Market Planning, Hamper and Baugh 1996

5. Strategic Marketing is the Management
function that:
Emphasizes profits, not just sales
Identifies target markets & delivers better value to the market
than competitors
Combines target markets and mix to formulate marketing
strategy
Strives to create sustainable differentiation

6. Strategic Marketing
Leads the strategic planning process & oversees execution
Leads & manages the new product/service development process
from ideation thru commercial launch
Identifies/exploits intellectual property, technical & commercial
advantages
Identifies/exploits trends
Identifies/addresses manufacturing/operational gaps
Gathers/disseminates/exploits market research and competitive
intelligence

7. Strategic Marketing
IS NOT:
Marketing Communications
Sales support/service
HOWEVER
Marketing Communications, Sales Support and
Customer Service initiatives are vitally important
elements of the overall strategic marketing mix,
especially when executed in a manner that creates
competitive differentiation

8. Marketing Encompasses:
Product
Price
Position
Promotion
Process
Profit

9. Understanding Marketing
“Upstream Marketing” “Downstream Marketing” “Field Marketing”
(strategic) (tactical) (customer & sales support)
Product/Price/Promotion/Place
Core business
Resource allocation
Brand & customer equity
Information, analysis & planning
Channel redesign
New product development
Product pricing & marketing
Advertising & communications
Sales support & services
Source: Linda Gorchels, Director, Executive Marketing Programs, UW-Madison School of Business

10. Management Scorecard for Creating Value
Performance Adaptability Opportunity
Gap + Gap + Gap
Restructuring Reconfiguration Revitalization
Quality Portfolio Choices Profitable Growth
Costs
Product Mix New Business Development
Cycle Time
Logistics Channels New Market Development
Head Count
Price-Performance Strategic Direction
Productivity
Administrative Systems New Business Model Resource Leverage
Value Creation
Forces Shaping Competitiveness
Performance Gap “Best in Class”
Adaptability Gap Anticipating & Managing Basic Industry Transformation
Opportunity Gap Capacity to create New Business
J. Taylor - 1998

11. Growth Strategies (one of many ways to slice it)
Growth
Current Offerings New Offerings
Current New Current New
Market Targets Market Targets Market Targets Market Targets
Market Market Product/Service Diversification &
Penetration Development Development Vertical Integration
Segment Segment Market Segment Segment Market
Penetration Enlargement Repositioning Factoring Extension Expansion
Strong Core Competencies Weak
Low Risk High
Low Reward High
M. D. Johnson - 1998

12. Key Questions to understand our Value
Proposition & Company Brand
How do we help our customers’ be more successful in the
market than their competitors?
How do we help our customers’ clients be more successful?
How do we drive their behavior with our message?
What compelling story do we have that clients will internalize
and see as a key competitive advantage?
What do we deliver that our clients can’t live without?